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The Home Office first tried to deport the suspected terrorist in 2000 when security services discovered he was supporting terrorism abroad.

The man was detained in 2002 for three years on terror charges and faced deportation.

But he managed to worm his way out after telling the courts to use the Human Rights Act to argue he faced torture if sent back to Algeria, where he claims to be from.

The man has repeatedly refused to comply with court orders requesting him to disclose his true identity, and has previously been jailed for contempt of court.

But MPs were left outraged when the Special Immigration Appeals Commission denied the Home Office’s request to strike out his legal claim to stay in the UK – arguing the Secretary of State “cannot procure” the man’s removal.

Iain Duncan Smith, the former Work and Pensions Secretary, branded the case “ridiculous” and chastised EU law for keeping the man in Britain.

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Iain Duncan Smith blasted the decision, branding it "ridiculous",

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He said: “How ridiculous. It is completely mad. We have a legal system that has lost all common sense.

“When we leave the European Union we can introduce our own bill of rights and then we can kick people like him out.”

The Home Office’s disastrous failure to deal with the slimy suspect is a major blow to Home Secretary Amber Rudd’s pledge to deport foreign terror suspects.

Authorities cannot even circulate his picture to discover his identity, thanks to the humiliating legal barrier protecting his anonymity.

The courts have previously ruled that B “played a leading role in facilitating communications for Algerian terrorists, as well as being responsible for the procurement of false documentation and high technology equipment”.

They also said the man “was deliberately refusing to disclose his true identity, in order to thwart the future progress of the appeal, and that this conduct was capable of amounting to an abuse of the due process of law which he had invoked by pursuing the appeal”.

Tens of thousands of pounds of taxpayers’ money has been wasted on legal aid for the case.

B’s solicitors have failed to comply with the Government’s requests to help identify the man.

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The ruling is a devastating blow to Amber Rudd, who pledged to deport more foreign terror suspects.

A Home Office spokesman told the Telegraph it was “extremely disappointed with SIAC’s judgement, particularly as they have twice ruled this individual to be of national security concern”.